Why Reform Is Going So Badly

By Evan Falchuk

Another day, another round of disastrous town hall meetings for congressional representatives.

Why is it going so badly?

As I noted yesterday, angry resistance to change in health benefits is totally predictable.

The RAND Corporation and Watson Wyatt did a survey of 42 large U.S. employers that implemented major changes to their benefits plans in recent years.  They found that employees were normally “wary,” “confused,” “apprehensive” and “risk averse” about changes.  Employees assume – rightly or wrongly – that when management talks about “controlling costs,” it is just a nice way of saying, “we want to spend less money on you.“  No one likes to hear that.

So what does work?

Clear, direct, honest communication.  Companies that spent 6 months or more talking about their plans were far more successful than those that didn’t.  What worked were real, specific examples of what change means for an employee and their family.  How much will my take home pay be affected?  How much more will I have to pay for care?  Can I still pick my own doctors?

There was no replacement for concrete, simple, real illustrations done over and over again.

It’s very much the opposite of what’s happening in health care reform.

Sure, we have been talking about it for months, but mostly about the need to cut costs.  People think – I’ve heard this story before at my job.  What it means is that my health care is about to get cut.  So they get anxious.

But unlike a company trying to implement a benefits change, representatives returning to their districts have no plan to explain.  Instead, they have multiple bills, and no idea of what may become law.  They can’t give real, practical examples of what reform may mean, and don’t seem to be trying.  It’s a very bad combination given how delicate the question of health care is.

And it also makes the statements by some of our representatives all the more bizarre.  There’s nothing at all helpful about trying to dismiss skeptical citizens as swastika-carrying agents of the insurance lobby.

So think about the angry people at town halls like employees at a company who are being told that their jobs are being eliminated, or their benefits are being cut.  And think when you watch our representatives talking about this how they are missing real, honest reaction, and making it worse.

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  • http://www.getbetterhealth.com Dr. Val

    It seems that the political engine is not designed for rational, nuanced debate. It’s a shame that the final common pathway (for discussions inside the beltway) seems to be: set up a false dichotomy, over-simplify the issues, demonize opponents of your view, and scare people into choosing one of two sides.

    Not that I’m jaded or anything.

    All I can say is that voices of reason don’t seem to flourish in DC – so we’ll just need to keep blogging.

    Keep up the good work, Evan.

  • http://twitter.com/efalchuk Evan Falchuk

    Thanks, Val.

    I’m reminded of the scene in the film Roger & Me where he is showing the closing of the GM plants in Flint, Michigan.

    It’s not clear to the employees what is really going on. An executive is seen explaining to a group on the day the plant is closing (around 4:20 in this clip) that it’s not a plant closing. Instead, he says, it’s “the loss of one product line.”

    If you’re going to communicate with your employees, you have to be clear and direct. No spin. And you better have your story straight. The trouble our representatives are running into is that they can’t do any of those things because they don’t have any story to tell. It’s no wonder they are getting reactions like the ones GM’s workers showed in that film.

  • http://healthcarerx.blogspot.com Deron S.

    Health insurance reform is lazy reform. It goes after the insurance companies because they are an easy target. The people that really get it (Evan, Dr. Val, etc.) know that reform should be much more than that. Every stakeholder and every cost driver must be addressed if we’re going to meaningfully “bend the cost curve”.

    I started getting really disappointed when Obama began calling it health insurance reform. Then I knew that a lot of the heavy lifting would not get done.

  • http://twitter.com/efalchuk Evan Falchuk

    Thanks for the comment, Deron.

    Yes, reform is a day by day process, not something that can somehow be done overnight. Keep doing the things you do to make a difference. And of course, keep writing about them!

    Evan

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  • http://cockroachcatcher.blogspot.com/ Am Ang Zhang

    In the UK and Europe the Health Insurance is paid by taxation. Unemployed people still do not pay. They buy lottery tickets though and as such a third of lottery profit should really go into health care.

    Found your site via Grand Rounds.

    The Cockroach Catcher

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  • http://crumpleitup.com/blog Greg Matthews

    In a past life, I was responsible for buying the benefits for my 600-person company. When we initiated our first consumer-driven plan, we had a reaction from employees that was very similar to what you describe.
    What really helped was that in the first year, we took our savings (ALL of our savings – which were fairly substantial) and rolled them into an employee bonus. That helped a lot in terms of understanding what it meant to the company to change the structure of our benefits.

  • http://twitter.com/efalchuk Evan Falchuk

    Great story, Greg.

    Your experience, by the way, is I think one of the big reasons why consumer-driven plans aren’t as popular as you would logically think they should be.

    People don’t like their benefits changed, and it takes thoughtful, insightful approaches to these issues to handle them successfully. It sounds like you did a terrific job with that.

    Evan

  • "Medicine is learned by the bedside and not in the class room. Let not your conception of manifestations of disease come from work heard in the lecture room or read from the book: see and then research, compare and control. But see first."
    - Sir William Osler, MD
    The Father of Modern Medicine
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